Fidelis Insurance (FIHL) Q4 2024 earnings summary

Executive summary

• Gross premiums written grew 23% year-over-year to $4.4 billion for 2024, reflecting strong top-line momentum and market leadership in specialty insurance and reinsurance.

• Operating net income was $137 million, with a combined ratio of 99.7%, impacted by adverse prior-year development in Aviation and Aerospace due to Russia-Ukraine litigation.

• Net investment income rose to $191 million, driven by higher investable assets and yields from strategic reinvestments.

• $152 million was returned to shareholders via dividends and share buybacks, maintaining a strong capital position.

• Book value per diluted share increased 5.3% to $21.79 at year-end 2024.

Financial highlights

• Full-year combined ratio was 99.7%, up from 82.1% in 2023; Q4 combined ratio spiked to 128% due to $270 million net adverse prior-year development.

• Operating ROE for 2024 was 5.6%; operating EPS was $1.18.

• Q4 gross premiums written rose 22% year-over-year to $954 million.

• Net investment income for 2024 was $191 million; Q4 investment income was $51 million.

• Catastrophe and large losses for 2024 totaled $509 million, with Q4 losses of $133.2 million.

Outlook and guidance

• Targeting 10% growth in gross premiums written for 2025, with net premiums earned expected to grow 15–20%.

• Long-term through-the-cycle targets remain mid to high 80s combined ratio and 13–15% operating ROE.

• Focus on maximizing shareholder value through book value growth, consistent returns, and disciplined capital management.

• Confident in achieving through-the-cycle targets despite early 2025 wildfire losses.

• Management expects to leverage market access, relationships, and capital management for profitable growth.